Correlation Between Ihuman and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Ihuman and Oatly Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ihuman and Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Oatly Group AB, you can compare the effects of market volatilities on Ihuman and Oatly Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ihuman with a short position of Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Oatly Group.
Diversification Opportunities for Ihuman and Oatly Group
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ihuman and Oatly is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Oatly Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oatly Group AB and Ihuman is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ihuman Inc are associated (or correlated) with Oatly Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oatly Group AB has no effect on the direction of Ihuman i.e., Ihuman and Oatly Group go up and down completely randomly.
Pair Corralation between Ihuman and Oatly Group
Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 0.57 times more return on investment than Oatly Group. However, Ihuman Inc is 1.74 times less risky than Oatly Group. It trades about 0.0 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.07 per unit of risk. If you would invest 177.00 in Ihuman Inc on November 4, 2024 and sell it today you would lose (5.00) from holding Ihuman Inc or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Oatly Group AB
Performance |
| Timeline |
| Ihuman Inc |
| Oatly Group AB |
Ihuman and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Oatly Group
The main advantage of trading using opposite Ihuman and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Oatly Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oatly Group will offset losses from the drop in Oatly Group's long position.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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